webfact Posted April 16 Share Posted April 16 Thailand’s Ministry of Commerce has issued directives to state bodies to devise strategies to mitigate potential surges in energy costs in the event of an escalation in the Israel-Iran conflict. The directive follows Iran’s missile and drone assault on Israel, a retaliatory move against Israel’s alleged attack on Iran’s consulate in Damascus earlier this month. This marked the first direct attack by Iran on Israel in a longstanding shadow conflict, typically characterised by Iran launching assaults on Israel via terror proxies. In response to the escalating situation, Commerce Minister Phumtham Wechayachai announced that he had tasked the ministry, the International Trade Promotion Department, the Trade Policy and Strategy Office, and foreign commerce diplomats with assessing potential impacts on Thai trade. Phumtham also called for diligent monitoring of activities in the Strait of Hormuz, a crucial maritime route for oil and natural gas exports for numerous Middle Eastern nations, including Saudi Arabia, the United Arab Emirates, Iran, Qatar, and Kuwait. The strait sees a daily traffic of around 21 million barrels of oil. Should the conflict intensify to the point of disrupting this key trade route, the implications could be severe. The disruption could significantly hinder oil procurement, leading to hikes in transport costs and global energy prices. Phumtham stressed the need for state bodies to examine the potential negative outcomes of such scenarios and devise strategies to mitigate impacts on Thailand and its export sector. The National Economic and Social Development Council previously expressed concerns that the Israel-Hamas conflict could impact the Thai economy via fuel and liquefied petroleum gas (LPG) prices should the situation worsen. The assessment indicated that the country’s capacity to stabilise fuel prices seems to be diminishing, while LPG prices may continue to rise given the rapid depletion of the oil fuel fund, reported Bangkok Post. by Alex Morgan Picture courtesy of engin akyurt, Unsplash Source: The Thaiger 2024-04-16 Get our Daily Newsletter - Click HERE to subscribe 1 1 Link to comment Share on other sites More sharing options...
bristolgeoff Posted April 16 Share Posted April 16 To be fair every country will be watching and waiting 2 Link to comment Share on other sites More sharing options...
nobodysfriend Posted April 16 Share Posted April 16 https://www.bbc.com/news/business-68812949 Oil prices fell on Monday after Iran's reprisal attack on Israel over the weekend. Brent crude - a key benchmark for oil prices internationally - was lower but still trading close to $90 a barrel. Prices had already risen in expectation of action by Iran, with Brent crude nearing a six-month high last week. 1 1 Link to comment Share on other sites More sharing options...
Popular Post hotchilli Posted April 16 Popular Post Share Posted April 16 A whiff of anything and prices will rise.... 1 4 Link to comment Share on other sites More sharing options...
Popular Post NoshowJones Posted April 16 Popular Post Share Posted April 16 Is it not more likely they will do a Makro and put western food prices up, ie tins of Ayam baked beans and tins of spam? Then blame foreign wars as an excuse. 1 3 3 Link to comment Share on other sites More sharing options...
shackleton Posted April 16 Share Posted April 16 Oil prices will not deter people using their cars for driving in Thailand Traffic congestion will stay the same in a Bangkok 2 Link to comment Share on other sites More sharing options...
Chongalulu Posted April 16 Share Posted April 16 30 baht per litre of diesel or thereabouts I’ll take all day long thanks. More than twice that in Uk! 2 Link to comment Share on other sites More sharing options...
Popular Post Chongalulu Posted April 16 Popular Post Share Posted April 16 11 minutes ago, NoshowJones said: Is it not more likely they will do a Makro and put western food prices up, ie tins of Ayam baked beans and tins of spam? Then blame foreign wars as an excuse. Something of a food connoisseur I notice. Wish I had the money for beans and spam then I could throw off the shackles of my taste for Milano salami ,Black Forest ham and Camembert that I’m stuck with buying from Foodland… 5 Link to comment Share on other sites More sharing options...
soalbundy Posted April 16 Share Posted April 16 28 minutes ago, NoshowJones said: Is it not more likely they will do a Makro and put western food prices up, ie tins of Ayam baked beans and tins of spam? Then blame foreign wars as an excuse. For every dish you will have the can. 1 Link to comment Share on other sites More sharing options...
Srikcir Posted April 16 Share Posted April 16 5 hours ago, webfact said: Thailand’s Ministry of Commerce has issued directives to state bodies to devise strategies to mitigate potential surges in energy costs in the event of an escalation in the Israel-Iran conflict. Regardless of the Iran-Israel conflict, Thailand appears to have already "trapped" itself with higher energy costs. (Note that unless Iran begins sinking oil tankers from Saudi Arabia, United Arab Emerites and Libya in the Middle East. Otherwise imports from the USA and Malaysia should be secure.) First by relying more on Russian oil exports given an advantageous currency conversion caused by UN sanctions against Russia and from pricing for what appears to remain neutral in Russia's invasion of Ukraine. Second Thailand has begun actively purchasing spot crude shipments to feed anticipated higher domestic fuel demand driven by Thailand's strategy to turbocharge its tourism industry. www.spglobal.com Spot prices can be artificially affected significantly by public perception. 1 Link to comment Share on other sites More sharing options...
Popular Post Chalong circle Posted April 16 Popular Post Share Posted April 16 1 hour ago, Chongalulu said: 30 baht per litre of diesel or thereabouts I’ll take all day long thanks. More than twice that in Uk! What about the salary ? 1 2 Link to comment Share on other sites More sharing options...
sandyf Posted April 16 Share Posted April 16 13 minutes ago, Chalong circle said: What about the salary ? More about the tax than anything else, yesterday tax on diesel in UK was 50.18%, during covid tax was in the order of 70%. Tax on petrol is a separate calculation and yesterday about 2% higher than diesel. https://www.racfoundation.org/data/percentage-uk-pump-price-which-is-tax-page#:~:text=Percentage of UK pump price which is tax&text=Fuel duty is currently levied,chart to see exact values. Fuel tax in Thailand is less than 25% of that in UK. 2 Link to comment Share on other sites More sharing options...
sambum Posted April 16 Share Posted April 16 (edited) 2 hours ago, NoshowJones said: Is it not more likely they will do a Makro and put western food prices up, ie tins of Ayam baked beans and tins of spam? Then blame foreign wars as an excuse. "Then blame foreign wars as an excuse." The last can to carry the blame for price hikes and delays in delivery was Covid-19. Any prospective reductions in the price of imported wine will probably meet the same fate - despite the lowering of import taxes and duties. Edited April 16 by sambum 2 Link to comment Share on other sites More sharing options...
Popular Post ronster Posted April 16 Popular Post Share Posted April 16 Seems any war or potential war is a good excuse for companies to charge more , even if it has no impact on goods etc 😒 1 1 1 Link to comment Share on other sites More sharing options...
Banana7 Posted April 16 Share Posted April 16 (edited) Thailand should be looking to Canada and USA for LNG supplies. LNG Canada is coming online soon, with 2 trains, overall plan is 6 or 8 trains. There are about another 3 LNG plants planned for west coast Canada. Massive pipeline to LNG Canada has been completed. Lots of natural gas, which can be processed and liquefied into LNG, in Canada and USA. Also, there is a huge LNG plant in Papa New Guinea, owned by Exxon. Lots of LNG available, and more coming online and available for export. If you need to import a critical resource, it's always important to diversify sources, plan ahead for supply disruptions, even if it costs more. The new proposed plants are looking for funding and partners. Original partners will control the cost of the LNG. Thailand could get it cheaper than buying it from an intermediary, if they invested. Edited April 16 by Banana7 1 Link to comment Share on other sites More sharing options...
IAMHERE Posted April 16 Share Posted April 16 (edited) Too bad Thailand doesn't have oil out in the Gulf that it could harvest. That's Sarcasm; should be an icon for it. (not sarcasm) Edited April 16 by IAMHERE Add some Sarcasm 1 1 Link to comment Share on other sites More sharing options...
dirtybirty Posted April 16 Share Posted April 16 1 hour ago, Chalong circle said: What about the salary ? Agree it's all relative. Price to earnings. E.g. A Thai earning Thai min wage could never afford to live ( even go on holiday) In for example the uk. However a UK citizen could lead a comfortable life in Thailand on UK min wage , and can yes afford to come on holiday here Link to comment Share on other sites More sharing options...
MrJ2U Posted April 16 Share Posted April 16 13 hours ago, webfact said: mitigate impacts on Thailand Code word for the usual greedy people running the government to increase next months utility bills in "anticipation" that prices "may" go up due to mideast tensions. 2 Link to comment Share on other sites More sharing options...
Kenneth White Posted April 17 Share Posted April 17 The whole world is waiting and holding their breath that this does not escalate and possibly start WWIII. If that happens, we are all "F"kt. Link to comment Share on other sites More sharing options...
Popular Post MrJ2U Posted April 17 Popular Post Share Posted April 17 2 hours ago, Kenneth White said: The whole world is waiting and holding their breath that this does not escalate and possibly start WWIII. If that happens, we are all "F"kt. Many of us don't expect much of an escalation. Oil prices have actually dropped. I'd be more concerned about Russia and it's continuing war in Ukraine. 1 2 Link to comment Share on other sites More sharing options...
KannikaP Posted April 17 Share Posted April 17 On 4/16/2024 at 2:08 PM, NoshowJones said: Is it not more likely they will do a Makro and put western food prices up, ie tins of Ayam baked beans and tins of spam? Then blame foreign wars as an excuse. Just check where YOUR Ayam baked beans are made! 1 1 Link to comment Share on other sites More sharing options...
Chongalulu Posted April 18 Share Posted April 18 On 4/16/2024 at 3:40 PM, Chalong circle said: What about the salary ? No matter what your salary,or even if you're on unemployment benefit in UK everyone pays the same . Wine here is double the UK price Link to comment Share on other sites More sharing options...
sandyf Posted April 18 Share Posted April 18 On 4/16/2024 at 4:28 PM, ronster said: Seems any war or potential war is a good excuse for companies to charge more , even if it has no impact on goods etc 😒 The conflicts are headline news and easy for some to make assumptions, they may or may not have some impact. The real reason for an upward trend in shipping costs comes from rerouting vessels. https://www.bbc.com/future/article/20240119-red-sea-crisis-how-global-shipping-is-being-rerouted-out-of-danger Link to comment Share on other sites More sharing options...
sandyf Posted April 18 Share Posted April 18 39 minutes ago, Chongalulu said: No matter what your salary,or even if you're on unemployment benefit in UK everyone pays the same . Wine here is double the UK price Your last statement is very generalised, if anything I would suggest domestic UK wine is very much the same price as Thai domestic wine. What you really mean is imported wine is heavily taxed to protect the domestic market. Fuel is heavily taxed in the UK but not for the same reason. We can live in hope that one day the Thai wine producers will become more efficient and prices fall, not holding my breath. Link to comment Share on other sites More sharing options...
Chongalulu Posted April 20 Share Posted April 20 On 4/18/2024 at 2:53 PM, sandyf said: Your last statement is very generalised, if anything I would suggest domestic UK wine is very much the same price as Thai domestic wine. What you really mean is imported wine is heavily taxed to protect the domestic market. Fuel is heavily taxed in the UK but not for the same reason. We can live in hope that one day the Thai wine producers will become more efficient and prices fall, not holding my breath. You are of course correct about taxes which distort prices. Actually domestic U.K. wine is more expensive than say Australian. U.K. really doesn’t have the geography to efficiently produce wine to compete with the likes of Australia and southern Europe (I worked in the industry). It costs more per bottle to truck a container across Europe to U.K. than a shipping container on a ship from Australia to Southampton docks! 1 Link to comment Share on other sites More sharing options...
sandyf Posted April 20 Share Posted April 20 3 hours ago, Chongalulu said: You are of course correct about taxes which distort prices. Actually domestic U.K. wine is more expensive than say Australian. U.K. really doesn’t have the geography to efficiently produce wine to compete with the likes of Australia and southern Europe (I worked in the industry). It costs more per bottle to truck a container across Europe to U.K. than a shipping container on a ship from Australia to Southampton docks! I have been to a couple of the Thai vineyards and still very much in their infancy. Silverlake has grown signifficantly since I first went but still a cottage industry and you effectively pay through the nose for "hand made". I don't really fault the government for protecting the industry as more than likely it would disappear. Rather than buy a box as I used to, now just enjoy a glass now and again. Link to comment Share on other sites More sharing options...
Barnet1900 Posted April 21 Share Posted April 21 On 4/16/2024 at 2:18 PM, Chongalulu said: 30 baht per litre of diesel or thereabouts I’ll take all day long thanks. More than twice that in Uk! You have to relate it to the price of living. Everything in Thailand must be multiplied by 2.5 to find the equivalent cost in the UK. Therefore, what you quote above actually means it's cheaper to fill up in England. I am unsure how they work it all out but I'm guessing they factor in salaries. The average working class Thai is on about 15-20k per month, so a tank if petrol works out around 10 per cent if their monthly salary. Link to comment Share on other sites More sharing options...
Mr Meeseeks Posted April 21 Share Posted April 21 On 4/16/2024 at 3:40 PM, Chalong circle said: What about the salary ? And the Thai government subsidies on fuel. Link to comment Share on other sites More sharing options...
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